Arion Bank made a profit of 12, ISK 5 billion last year. The Bank’s performance from continuing operations was 11, ISK 7 billion during the year. Return on equity was 6.5 percent.
The year 2019 the bank made a profit of 1.1 billion .
This is stated in Arion Bank’s quarterly financial statements for the last quarter 713 and the year as a whole. It states that the bank’s performance has increased considerably between years. The fourth quarter of last year was particularly good.
Results in the last quarter 2020 was ISK 5 million 713 million and the result of continuing operations is 8. 66 million, which is an increase of 10 percent compared to the same period 440. Profit from continuing operations over the past year was 11, ISK 7 billion and that is an increase of percent) percent of 1999.
Return on equity for the quarter was , 8 percent in the quarter but was negative by 5.8 percent during the same period ())
Arion Bank’s total assets increased by eight percent in last year but the loan book rose by six per cent and deposits by fifteen per cent.
The bank’s equity ratio was percent) at the end of last year and the ratio of Tier 1 was 16, 3 percent. The Bank’s Board of Directors has approved a repurchase program for Arion Bank’s shares.
Further information can be found on Arion Bank’s website .
Benedikt Gíslason, CEO:
“The year was in many ways unusual due to the economic and social impact of Covid – en The Bank’s operations were successfully adapted to the changed reality after the restrictions on meetings came into force last March. The bank’s staff is to be thanked for their perseverance and resourcefulness. Long worked well % of employees at home, from there carry out their tasks and serve our customers. Our branches were closed for a while except for those who had a pre-booked time. It can be said that the digital development that has taken place in financial services in this country has been very successful during the year, as both individuals and companies were able to handle almost all of their finances with digital solutions and pay for products and services without contact.
The bank’s performance improved significantly between years, both net profit and profit from continuing operations, which shows good results from the organizational and emphasis changes that were undertaken towards the end of the third quarter 1999. The result in the fourth quarter of the year was particularly good, profit from continuing operations increased by 42% from the previous year and profitability in the quarter was in excess of % of the bank’s objectives. The Financial Supervisory Authority of the Central Bank of Iceland has approved the Bank’s request to repurchase own shares for up to 15 billion, which is very good news for Arion Bank and hopefully the banking system as a whole. The Bank also proposes to the Annual General Meeting to pay a dividend of almost ISK 3 billion. Despite this, the bank’s financial strength is among the best in Europe and there is a large lending capacity.
In response to the changing economic situation in the country’s economy, Arion Bank was the first bank to offer both individuals and companies a break in loans. Loans in the amount of 110 ISK billion went into a payment break to customers’ request, but at the end of the year, loans during the payment period amounted to 42 billion ISK. At the same time, the bank has never provided so many mortgages, which is obviously explained by a changed interest rate environment. About half of the bank’s housing loan portfolio at the end of the year was loans that we granted to customers during the year 1999, a total of 0103 billion. Loans to companies were also unusually large, with the bank borrowing billions of ISK 130 to companies during the year and to a considerable extent it was refinancing. New loans to companies include just over ISK 1 billion in additional loans and almost ISK 3 billion in support loans related to the government’s actions due to Covid – 12. As the year progressed, markets recovered and assets under management at the Bank increased by more 66 billion ISK during the year. Arion Bank was also the largest stockbroker on the market for the fifth year in a row. 10 The use of our digital service channels increased last year, which means that our communication with customers increases significantly. On average, we communicate with all our customers once a day during the year 713, in total 22 Million times, and were 66% of those communications digital. It is obvious that this is an opportunity to further strengthen our service, make it more convenient and efficient.